Air India hit by US fines

AIR INDIA is among six airlines ordered by the US Department of Transportation to pay more than $600 million (£501m) in passenger refunds over cancelled or changed flights, after travellers sought redress for failing to get their money back.

Authorities have received a “flood of complaints from air travellers” since the start of the pandemic, over a lack of timely refunds, the department said on Monday (14).

Air India, TAP Portugal, Aeromexico, El Al, Avianca as well as American low-cost carrier Frontier were among those hit by the fines.

“A flight cancellation is frustrating enough. You shouldn't also have to haggle or wait months to get your refund," said transportation secretary Pete Buttigieg.

In addition to the refunds, the Transportation Department also said it was assessing more than $7.25m (£6m) in civil penalties against the airlines, over “extreme delays in providing refunds”.

Among the airlines, Frontier faced the highest penalty at $2.2m (£1.84m), while Air India was hit with a $1.4m (£1.17m) fine.

Under US law, airlines and ticket agents are legally obliged to refund customers if the airline cancels or “significantly changes” a flight to, from and within the US, and if the consumer does not want to accept the offered alternative. It is unlawful for airlines to refuse refunds and provide vouchers instead to consumers, authorities said.

Air India's policy of “refund on request” is contrary to the Department of Transportation policy, officials said.

The cases in which Air India was asked to pay the refund and agreed to pay the penalty were before the national carrier was bought by the Tatas.